> Warren Buffett Blog: Could Berkshire qualify as a SIFI

Monday, May 4, 2015

Could Berkshire qualify as a SIFI

Even as it operates one of the world’s largest insurers, Berkshire is unlikely to be named a SEFI (Systemically important financial institution) according to Warren Buffett. He said regulators haven’t contacted the firm about the tag, which can mean tougher capital, leverage and liquidity requirements.

"There is no reason, in logic or in terms of what we've heard, to think that Berkshire would be designated as a SIFI,” Buffett said. He added that SIFIs tend to get at least 85 percent of revenue from financial operations, and “we don’t come remotely close to that.”

"I do not think Berkshire comes within miles of qualifying as a SIFI."